Recent figures released show that Singapore has overtaken China as the top investor in Myanmar. The figures include indirect investment from America and European Union Countries. Now Singapore has 55% of the total foreign direct investment and over $519 million. Why?
One has to look back and recognise the ASEAN Agreement. Under Article 1 of the Agreement the objectives are to create a free and open investment regime in the ASEAN Member States*. An integrated investment area, maintaining preferential treatment among Member States, creating a transparent investment environment in ASEAN. In other words, scrutiny on investments from non ASEAN sources.
Then there is the matter of controls on investment into Myanmar introduced by the USA. Many of these controls are being released but all these matters together demanded solutions, in order to get investment funds into Myanmar. Singapore provides the route, as an ASEAN country, authorised to invest in accordance with the ASEAN Agreement.
There are plenty of incentives. For 2016, financial forecasts from the IMF see Myanmar as the fastest growing economy, with growth of 8.6 percent. Still in a phase of development, with rapid change and huge opportunities, Myanmar is clearly attracting growing foreign direct investment (FDI) within ASEAN and further afield. The ongoing economic reforms are continually encouraging this growth.
You may have seen our previous blog on The New Investment law, so expect investment levels to continue to rise further. It has never been easier nor more lucrative to invest in Myanmar.
FocusCore opened in Myanmar to facilitate exactly this process – to help you launch your company in Myanmar. We can help you through the processes for your company establishment, Visa and Work Permits applications, to office facilities and to provide legal and bookkeeping services.
Contact us now for more details on the sectors benefiting from this growth in investments and the special economic zones.
*The Governments of Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People’s Democratic Republic, Malaysia, the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand and the Socialist Republic of Viet Nam, Member States of the Association of Southeast Asian Nations (“ASEAN”).